Many investors sell their shares in the money market when their prices increase in order to benefit from large financial gains.
The idea of selling shares differs from one investor to another, according to the nature of the market, the market price, and each investor’s strategy in managing their portfolio.
Why do you sell stocks?
Stocks are often sold for many reasons, most notably, an increase in price that leads to large capital gains.
The second reason is a decline in price. An investor will look to sell the shares for fear of a further decline in the stock price may cause a loss.
In the event of a decline, the investor quickly resorts to selling the stock to avoid a possible loss that he may be exposed to, especially if the market conditions indicate this decline.
The investor could take a risk and postpone the idea of selling in the event of a decrease in the hope of the stock rising again, which will help the investor potentially avoid a loss or make a small return.
The decision to sell the shares
The decision to sell shares is not an easy decision and requires experience in dealing with the market and the stock exchange. Many of those who deal in the money market resort to specialized experts or money management companies in order to assist in the decision to sell stocks and provide appropriate proposals.
The decision to sell shares is subject to many matters and rules, including:
The association of stock prices with earnings over a long period of time, which depends on the strength and weakness of the stock, as well as the possible expectations of the fate of the stock in the market.
It also depends on the ability of the company to grow and make a profit.
Evaluating a stock helps investors track if the company is performing well accordingly, the decision to sell may be postponed. Still, in the event of collapses and deviations in the share price, selling may be the best decision.
If the share price and volume hit an unexpectedly low level, an investor may sell to avoid the loss and maintain the investor’s level of comfort within the market.
Also, it is not a requirement that the decision to sell is related to a gain or a loss. The investor may have a better investment opportunity, and here he may need to sell the shares, perhaps because he needs to raise money to capitalize on this opportunity, and this requires some patience.
In the end, the decision to sell shares requires a plan, good market awareness, and experience in dealing and does not require randomness in decision-making.
This was not written by Thndr and this is not investment advice, you should do your own research before making investment decisions.
